Renault to Consider Producing Cars for Nissan in France

Renault SA is considering producing cars in France for Nissan Motor Co. and other partners as part of a possible deal with the country’s unions on working conditions and increased flexibility.

“The signing of an agreement in the framework of current negotiations with unions to guarantee the global performance of Renault in France will allow us to make commitments on the allocation of volumes coming from our partners,” Renault said in an e-mailed statement today.

French Industry Minister Arnaud Montebourg said earlier today on the radio station RMC that he had asked Carlos Ghosn, chief executive officer for both Renault and Nissan, to look at producing Nissan vehicles at underutilized Renault factories as part of the current labor talks.

The Boulogne-Billancourt, France-based company plans to eliminate 7,500 jobs through 2016 in its home country, including 5,700 posts that will disappear when employees retire or quit and aren’t replaced. It’s also talking with unions on ways to raise productivity, asking for a 6.5 percent increase in work hours and greater mobility between factories.

The job cuts are intended to reduce fixed costs by 396 million euros ($529 million), Dominique Chauvin, head of the CFE-CGC union at Renault, said on Jan. 15. The carmaker doesn’t plan to shutter any factories, Ghosn said that day.

Before it's here, it's on the Bloomberg Terminal.